Insurers lament apparent demise of bills to curb contractor control

With the state legislative session winding down, Florida insurers mourned the stalling of bills to control what they see as “assignment of benefit” abuses.

They say consumers ultimately pay through higher rates when, say, water-damage claims are inflated by contractors who get homeowners to sign forms instructing insurers to pay them. Contractors have fought back, saying changes are not justified.

“The legislature’s failure to directly address the assignment of benefits crisis will allow runaway claims to spiral further out of control,” said William Stander, executive director of the Florida Property & Casualty Association. “Coupled with the approaching hurricane season, which brings its own uncertainties, the potential for higher rates is palpable.”